Market Newsdesk

August 19, 2021 6:03 am

MINISO Group Announces June Quarter and Full Fiscal Year 2021 Results

PR Newswire

GUANGZHOU, China, Aug. 19, 2021 /PRNewswire/ — MINISO Group Holding Limited (NYSE: MNSO) (“MINISO”, “MINISO Group” or the “Company”), a fast-growing global value retailer offering a variety of design-led lifestyle products, today announced its unaudited financial results for the fourth quarter and fiscal year ended June 30, 2021.

Financial Highlights for the Fourth Quarter ended June 30, 2021

Revenue was RMB2,472.4 million (US$382.9 million), within the Company’s guidance range of RMB2,300 million and RMB2,500 million, representing an increase of 59.2% year over year and 10.9% quarter over quarter.
Gross profit was RMB639.1 million (US$99.0 million), representing an increase of 68.4% year over year and an increase of 2.0% quarter over quarter.
Operating profit was RMB187.8 million (US$29.1 million), compared to a loss of RMB29.7 million in the same period of 2020 and a profit of RMB161.1 million in the previous quarter.
Profit from continuing operations was RMB111.2 million (US$17.2 million), compared to a loss of RMB74.8 million in the same period of 2020 and a profit of RMB115.0 million in the previous quarter.
Adjusted net profit^[1]was RMB145.1 million (US$22.5 million), representing an increase of 241.7% year over year and a decrease of 2.6% quarter over quarter.

^[1] See the section titled “Non-IFRS Financial Measure” for more information about the non-IFRS financial measure referred to in this press release.

Operational Highlights for the Fourth Quarter ended June 30, 2021

Number of MINISO stores increased to 4,749 as of June 30, 2021, representing a quarterly net addition of 162 stores, compared to a net decrease of 1 store in the same period of 2020 and a net addition of 73 stores in the previous quarter.
Number of MINISO stores in China increased to 2,939 as of June 30, 2021, representing a quarterly net addition of 127 stores, compared to a net decrease of 2 stores in the same period of 2020 and a net addition of 44 stores in the previous quarter.
Number of MINISO stores in overseas markets increased to 1,810 as of June 30, 2021, representing a quarterly net addition of 35 stores, compared to a net addition of 1 store in same period of 2020 and a net addition of 29 stores in the previous quarter.
The Company entered four additional countries in the fourth quarter ended June 30, 2021, marking its 98^th entry into an overseas market.
After the TOP TOY brand was launched in December 2020, the Number of TOP TOY stores increased to 33 as of June 30, 2021, representing a quarterly net addition of 24 stores.

The following table provides a breakdown of the number of MINISO and TOP TOY stores as well as their year-over-year and quarter-over-quarter changes of the relevant dates:

	As of
	June 30,	March 31,	June 30,
	2020	2021	2021	YoY	QoQ
Number of MINISO stores ^[2]	4,222	4,587	4,749	527	162
China	2,533	2,812	2,939	406	127
—Directly operated stores	7	5	5	(2)	–
—Third-party stores	2,526	2,807	2,934	408	127
Overseas^[3]	1,689	1,775	1,810	121	35
—Directly operated stores	122	107	105	(17)	(2)
—Third-party stores	1,567	1,668	1,705	138	37
Number of TOP TOY stores ^[4]	–	9	33	33	24
—Directly operated stores	–	2	2	2	–
—Third-party stores	–	7	31	31	24

^[2] “MINISO stores” are any of the stores operated under the “MINISO” brand name, including those directly operated by the Company (“Directly operated stores”), and those operated by third parties under the MINISO Retail Partner model and the distributor model (“Third-party stores”).
^[3] Overseas stores exclude a small number of stores under certain overseas businesses that the Company had disposed of as of June 30, 2020. The Company completed such business disposal during the period from December 2019 to April 2020.
^[4] “TOP TOY stores” are any of the stores operated under the “TOP TOY” brand name, including those directly operated by the Company (“Directly operated stores”), and those operated by third parties under the MINISO Retail Partner model.

Financial Highlights for Fiscal Year 2021

Revenue was RMB9,071.7 million (US$1,405.0 million), representing an increase of 1.0% year over year.
Gross profit was RMB2,430.7 million (US$376.5 million), compared to RMB2,732.5 million in fiscal year 2020.
Operating profit was RMB401.0 million (US$62.1 million), compared to RMB766.6 million in fiscal year 2020.
Loss from continuing operations was RMB1,429.4 million (US$221.4 million), compared to RMB130.1 million in fiscal year 2020.
Adjusted net profit was RMB480.1 million (US$74.4 million), compared to RMB970.8 million in fiscal year 2020.

Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, “MINISO Group closed fiscal year 2021 with a solid fourth quarter. Despite the rapid spread of the Delta variant triggering a new round of pandemic in Guangdong province and some overseas markets, we managed to add 162 MINISO stores and 24 TOP TOY stores to our global store network during this quarter. In fiscal year 2021, the MINISO brand added 527 stores worldwide, we successfully accomplished our IPO, announced our ‘X’ strategy, further illustrating our commitment to becoming a global leading new-retail platform and launched TOP TOY.”

Mr. Ye continued, “In fiscal year 2022, we remain committed to the pursuit of our strategies in store network expansion, product innovation, omni-channel experience and new initiatives such as TOP TOY. We will also continue to closely monitor the development of the pandemic and adjust our business plan dynamically, continue to cooperate with overseas partners in various aspects, and help them with future development.”

Mr. Saiyin Zhang, Chief Financial Officer and Executive Vice President of MINISO, commented, “We have experienced accelerating recoveries in both domestic operations and international operations in this quarter, as proved by the largest year-over-year growth in both top line and bottom line in recent eight quarters. We are also pleased to announce a cash dividend of about RMB300 million, our capital allocation strategy in the future will prioritize new growth opportunities, such as new strategic initiatives and new store expansion, and we will also remain committed to bringing return to shareholders through anticipated dividend payments.”

“The latest resurgence of the pandemic from Nanjing in China has spread to several provinces and is still evolving. We currently estimate that our sales will continue to be pressured by the lingering effects of the pandemic in the short term, which will lead to reduced traffic or even the temporary closure of our stores. We will continue to focus on those elements of the business that are under our control, such as product innovation, inventory management, operating efficiency and omni-channel strategy to drive sales and protect margins.” Mr. Zhang concluded.

Recent Developments

Impact of COVID-19

The COVID-19 pandemic continued to impact the Company’s operations and results in June quarter. In China, sales growth was negatively impacted by the outbreak of the Delta variant in Guangdong province during the period from late May to early July. The Company estimates that its GMV loss for those influenced stores during this period was around RMB50 million. In overseas markets, 205 stores had not resumed operations as of June 30, 2021. The majority of those stores that resumed operations were half-opened or had operating hours reduced due to regional resurgences of COVID-19.

Dividend

MINISO’s board of directors has approved a cash dividend in the amount of US$0.156 per ADS, or US$0.039 per Class A ordinary share, payable as of the close of business on September 9, 2021 to shareholders of record as of the close of business on August 31, 2021. The ex-dividend date will be August 30, 2021. The aggregate amount of cash dividends to be paid is approximately RMB300 million, which will be funded by surplus cash on the Company’s balance sheet.

Unaudited Financial Results for the Fourth Quarter ended June 30, 2021

Revenue was RMB2,472.4 million (US$382.9 million), representing an increase of 59.2% year over year and 10.9% quarter over quarter. The year-over-year increase was primarily driven by the growth of the Company’s domestic operations and recovery of its international operations.

Revenue generated from the Company’s domestic operations was RMB1,946.3 million (US$301.4 million), increasing by 42.6% year over year. Revenue generated from domestic operations of the MINISO brand was RMB1,830.1 million (US$283.4 million), increasing by 39.1% year over year, mainly driven by a year-over-year increase of 13.5% in average store count and a year-over-year growth of 22.6% in average revenue per store in China.

Revenue generated from the Company’s international operations was RMB526.1 million (US$81.5 million), increasing by 179.0% year over year, reflecting the recovery of the Company’s international operations from the same period of 2020.

Revenue per MINISO store, which is calculated by dividing the revenue of the MINISO brand by the average number of MINISO stores at the beginning and the end of the relevant period, was RMB504.7 thousand (US$78.2 thousand) in June quarter, representing a year-over-year increase of 41.7% and a quarter-over-quarter increase of 6.5%.

Cost of sales was RMB1,833.3 million (US$283.9 million), representing an increase of 56.2% year over year and an increase of 14.4% quarter over quarter.

Gross profit was RMB639.1 million (US$99.0million), representing an increase of 68.4% year over year and an increase of 2.0% quarter over quarter.

Gross margin was 25.8%, compared to 24.4% in the same period of 2020 and 28.1% in the previous quarter. The year-over-year increase was primarily due to an increase in revenue contribution from the Company’s international operations, which typically has a higher gross margin than the Company’s domestic operations. The quarter-over-quarter decrease was mainly attributable to 1) increased promotion activities during the “6.18 Mid-Year Shopping Festival”, and 2) inventory clearances in certain cities that aimed to tackle the negative impacts caused by reoccurrence of the pandemic in Guangdong.

Other income was RMB4.1million (US$0.6 million), compared to RMB33.7 million in the same period of 2020 and RMB4.3 million in the previous quarter. The year-over-year change in other income was due to the receipt of a government grant in April 2020.

Selling and distribution expenses were RMB282.8 million (US$43.8 million), representing an increase of 3.5% year over year and a decrease of 4.6% quarter over quarter. Excluding share-based compensation expenses, selling and distribution expenses were RMB263.8 million (US$40.9 million), compared to RMB230.1 million in the same period of 2020 and RMB275.0 million in the previous quarter. The year-over-year increase was primarily attributable to increased personnel related expense and marketing expenses as with the year-over-year revenue growth and brand awareness improvement for both MINISO and TOP TOY. The quarter-over-quarter decrease was primarily attributable to rent deductions related to COVID-19 in certain international markets.

General and administrative expenses were RMB200.1 million (US$31.0 million), representing an increase of 13.8% year over year and an increase of 18.1% quarter over quarter. Excluding share-based compensation expenses, general and administrative expenses were RMB188.2 million (US$29.2 million), compared to RMB118.4 million in the same period of 2020 and RMB157.0 million in the previous quarter. The year-over-year increase was primarily due to 1) increases in personnel related expenses and IT expenses for the Company’s new initiatives such as TOP TOY, and 2) the Company took necessary measures to reduce its general and administrative expenses to tackle the challenges caused by the pandemic during the same period of 2020, resulting in a low comparison base for these expenses. The quarter-over-quarter increase was primarily due to increased professional service fees.

Other net income was RMB21.9 million (US$3.4 million), compared to RMB18.5 million in the same period of 2020 and RMB8.4 million in the previous quarter. The year-over-year increase was mainly due to increases in investment income. The quarter-over-quarter increase was primarily attributable to a larger foreign exchange loss in March quarter than in June quarter.

Operating profit was RMB187.8 million (US$29.1 million), compared to a loss of RMB29.7 million in the same period of 2020 and a profit of RMB161.1 million in the previous quarter.

Profit from continuing operations was RMB111.2 million (US$17.2 million), compared to a loss of RMB74.8 million in the same period of 2020 and a profit of RMB115.0 million in the previous quarter.

Adjusted net profit

^[5]

, which represents net profit excluding (i) fair value changes of paid-in capital subject to redemption and other preferential rights or redeemable shares with other preferential rights, (ii) loss from discontinued operations, net of tax, (iii) equity-settled share-based payment expenses, (iv) employee compensation expenses related to non-forfeitable dividends related to unvested restricted shares, and (v) impairment loss on non-current assets, was RMB145.1 million (US$22.5 million), representing an increase of 241.7% year over year and a decrease of 2.6% quarter over quarter.

MINISO reported basic and diluted earnings from continuing operations per American Depositary Share (“ADS”) of RMB0.380(US$0.06) and RMB0.376 (US$0.06) in June quarter, respectively, compared to a loss of RMB0.36 each in the same period of 2020 and a profit of RMB0.40 each in the previous quarter. Each ADS represents four of the Company’s Class A ordinary shares.

^[5] See the sections titled “Non-IFRS Financial Measure” and “Reconciliation of Non-IFRS Financial Measure” in this press release for more information about adjusted net profit.

Adjusted basic and diluted earnings per ADS were both RMB0.48 (US$0.07) in June quarter, compared to adjusted basic and diluted earnings per ADS of RMB0.16 in the same period of 2020 and adjusted basic and diluted earnings per ADS of RMB0.52 in the previous quarter.

As of June 30, 2021, the combined balance of the Company’s cash, cash equivalents, restricted cash and other investments amounted to RMB6,878.3 million (US$1,065.3 million), compared to RMB2,861.0 million as of June 30, 2020.

Fiscal Year 2021 Financial Results

Revenue was RMB9,071.7 million (US$1,405.0 million), representing an increase of 1.0% year over year.

Revenue generated from the Company’s domestic operations was RMB7,291.2 million (US$1,129.3 million), increasing by 20.6% year over year. Revenue generated from domestic operations of the MINISO brand was RMB6,969.7 million (US$1,079.5 million), increasing by 20.4% year over year.

Revenue generated from the Company’s international operations was RMB1,780.4 million (US$275.8 million), decreasing by 39.3% year over year.

Cost of sales was RMB6,641.0 million (US$1,028.6 million), representing an increase of 6.3% year over year.

Gross profit was RMB2,430.7 million (US$376.5 million), compared to RMB2,732.5 million in fiscal year 2020.

Gross margin was 26.8%, compared to 30.4% in fiscal year 2020. The year-over-year decrease in gross margin was primarily due to a decrease in revenue contribution from the Company’s international operations, which has a higher gross margin than the Company’s domestic operations. International operations contributed 19.6% of the Company’s total revenue in fiscal year 2021, compared to 32.7% in fiscal year 2020.

Other income was RMB52.1 million (US$8.1 million), compared to RMB37.2 million in fiscal year 2020.

Selling and distribution expenses were RMB1,206.8 million (US$186.9 million), compared to RMB1,190.5 million in fiscal year 2020. Excluding share-based compensation expenses, selling and distribution expenses were RMB1,075.6 million (US$166.6 million), compared to RMB1,062.7 million in fiscal year 2020.

General and administrative expenses were RMB810.8 million (US$125.6 million), compared to RMB796.4 million in fiscal year 2020. Excluding share-based compensation expenses, general and administrative expenses were RMB660.7 million (US$102.3 million), compared to RMB559.8 million in fiscal year 2020.

Other net loss was RMB40.4 million (US$6.3 million), compared to an income of RMB46.0 million in fiscal year 2020. Other net loss in fiscal year 2021 was mainly attributable to foreign exchange losses, which was in line with the appreciation of the Renminbi against the U.S. dollar in the period.

Operating profit was RMB401.0 million (US$62.1 million), compared to RMB766.6 million in fiscal year 2020.

Loss from continuing operations was RMB1,429.4 million (US$221.4 million), compared to RMB130.1 million in the prior fiscal year. The fluctuation in loss from continuing operations was mainly due to fair value changes of redeemable shares with other preferential rights, which was a loss of RMB680.0 million in fiscal year 2020, compared to a loss of RMB1,625.3 million in fiscal year 2021.

Adjusted net profit^[6], which represents net profit excluding (i) fair value changes of paid-in capital subject to redemption and other preferential rights or redeemable shares with other preferential rights, (ii) loss from discontinued operations, net of tax, (iii) equity-settled share-based payment expenses, (iv) employee compensation expenses related to non-forfeitable dividends related to unvested restricted shares, and (v) impairment loss on non-current assets, was RMB480.1 million (US$74.4 million) in fiscal year 2021, compared to RMB970.8 million in the prior fiscal year.

^[6] See the sections titled “Non-IFRS Financial Measure” and “Reconciliation of Non-IFRS Financial Measure” in this press release for more information about adjusted net profit.

Basic and diluted loss from continuing operations per American Depositary Share (“ADS”) were both RMB4.72 (US$0.73) in fiscal year 2021, compared to RMB0.48 in fiscal year 2020. Each ADS represents four of the Company’s Class A ordinary shares.

Adjusted basic and diluted earnings per ADS were both RMB1.68 (US$0.26) in fiscal year 2021, compared to RMB3.72 in fiscal year 2020.

Business Outlook

For the first quarter of fiscal year 2022 ended September 30, 2021, the Company currently estimates its revenue to be between RMB2,450 million and RMB2,650 million, representing an increase of 18.2% to 27.9% year over year. This estimate represents management’s current and preliminary views on the market and operational conditions as of the date of this press release, which does not factor in any of the potential future impacts caused by the COVID-19 pandemic and is subject to change.

Conference Call

The Company’s management will hold an earnings conference call at 8:00 A.M. Eastern Time on Thursday, August 19, 2021 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The conference call can be accessed via the following zoom link or by dialing the following numbers:

Access 1

Join Zoom meeting via below link:
https://dooyle.zoom.us/j/83401916859?pwd=ZVdkSEZpUTZNMnJPTVRsVDBBZWUxUT09

Meeting Number: 834 0191 6859
Meeting Passcode: 361700

Access 2

Listeners may access the call by dialing the following numbers with the same meeting number and passcode with Access 1.

United States Toll Free:	833 548 0282 (or 877 853 5247)
Mainland China Toll Free:	400 182 3168 (or 400 616 8835)
Hong Kong, China Toll Free:	800 906 780 (or 800 931 189)
United Kingdom (Charge Fees):	+44 208 080 6592 (or +44 330 088 5830)
France (Charge Fees):	+33 1 7037 9729 (or +33 1 7095 0103)
Singapore (Charge Fees):	+65 3165 1065 (or +65 3158 7288)
Canada (Charge Fees):	+1 647 374 4685 (or +1 647 558 0588)

Access 3

Listeners can also access the meeting through the Company’s investor relations website at http://ir.miniso.com/.

A replay will be available approximately two hours after the conclusion of the live event at the Company’s investor relations website at http://ir.miniso.com/.

About MINISO Group

MINISO Group is a fast-growing global value retailer offering a variety of design-led lifestyle products. The Company serves consumers primarily through its large network of MINISO stores, and promotes a relaxing, treasure-hunting and engaging shopping experience full of delightful surprises that appeals to all demographics. Aesthetically pleasing design, quality and affordability are at the core of every product in MINISO’s wide product portfolio, and the Company continually and frequently rolls out products with these qualities. Since the opening of its first store in China in 2013, the Company has built its flagship brand “MINISO” as a globally recognized retail brand and established a massive store network worldwide. For more information, please visit https://ir.miniso.com/.

Exchange Rate

The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2021, which was RMB6.4566 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.

Non-IFRS Financial Measure

In evaluating the business, MINISO considers and uses adjusted net profit as a supplemental measure to review and assess its operating performance. The presentation of this non-IFRS financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. MINISO defines adjusted net profit as profit/(loss) excluding (i) fair value changes of paid-in capital subject to redemption and other preferential rights or redeemable shares with other preferential rights, (ii) loss from discontinued operations, net of tax, (iii) equity-settled share-based payment expenses, (iv) employee compensation expenses related to non-forfeitable dividends related to unvested restricted shares, and (v) impairment loss on non-current assets.

MINISO presents adjusted net profit because it is used by the management to evaluate its operating performance and formulate business plans. Adjusted net profit enables the management to assess its operating results without considering the impacts of the aforementioned non-cash and other adjustment items that MINISO does not consider to be indicative of its operating performance in the future. Accordingly, MINISO believes that the use of this non-IFRS financial measure provides useful information to investors and others in understanding and evaluating its operating results in the same manner as the management and board of directors.

This non-IFRS financial measure is not defined under IFRS and is not presented in accordance with IFRS. The non-IFRS financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit is that it does not reflect all items of income and expense that affect MINISO’s operations. Further, this non-IFRS measure may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited.

The non-IFRS financial measure should not be considered in isolation or construed as an alternative to profit/(loss) or any other measure of performance or as an indicator of MINISO’s operating performance. Investors are encouraged to review MINISO’s historical non-IFRS financial measure in light of the most directly comparable IFRS measure, as shown below. The non-IFRS financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing MINISO’s data comparatively. MINISO encourages you to review its financial information in its entirety and not rely on a single financial measure.

For more information on the non-IFRS financial measure, please see the table captioned “Reconciliation of Non-IFRS Financial Measure” set forth at the end of this press release.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. Among other things, the guidance for the fiscal year 2022’s first quarter ended September 30, 2021 and quotations from management in this announcement, as well as MINISO’s strategic and operational plans, contain forward-looking statements. MINISO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about MINISO’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: MINISO’s mission, goals and strategies; future business development, financial conditions and results of operations; the expected growth of the retail market and the market of branded variety retail of lifestyle products in China and globally; expectations regarding demand for and market acceptance of MINISO’s products; expectations regarding MINISO’s relationships with consumers, suppliers, MINISO Retail Partners, local distributors, and other business partners; competition in the industry; proposed use of proceeds; and relevant government policies and regulations relating to MINISO’s business and the industry. Further information regarding these and other risks is included in MINISO’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and MINISO undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Contact:

Mengru Wang
MINISO Group Holding Limited
Email: [email protected]
Phone: +86 (20) 36228788 Ext.8039

MINISO GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
*(Expressed in thousands)*

	As at	As at
	June 30, 2020	June 30, 2021
	(Audited)	(Unaudited)
	RMB’000	RMB’000	US$’000
ASSETS
Non-current assets
Property, plant and equipment	88,062	76,316	11,820
Right-of-use assets	502,867	689,887	106,850
Intangible assets	69,091	61,005	9,448
Goodwill	–	19,640	3,042
Deferred tax assets	183,520	168,552	26,105
Prepayments	6,112	138,481	21,448
Interest in an associate	–	352,062	54,527

	849,652	1,505,943	233,240

Current assets
Other investments	–	102,968	15,948
Inventories	1,395,674	1,496,061	231,710
Trade and other receivables	729,889	824,725	127,734
Cash and cash equivalents	2,853,980	6,771,653	1,048,795
Restricted cash	7,056	3,680	570

	4,986,599	9,199,087	1,424,757

Total assets	5,836,251	10,705,030	1,657,997

EQUITY
Share capital	69	92	14
Additional paid-in capital	162,373	8,289,160	1,283,827
Other reserves	625,984	928,005	143,730
Accumulated losses	(1,125,055)	(2,558,291)	(396,229)

(Deficit) / equity attributable to equity shareholders of the Company	(336,629)	6,658,966	1,031,342
Non-controlling interests	13,583	(6,812)	(1,055)

Total (deficit) / equity	(323,046)	6,652,154	1,030,287

LIABILITIES
Non-current liabilities
Contract liabilities	74,226	59,947	9,285
Loans and borrowings	15,207	6,925	1,073
Lease liabilities	378,894	483,144	74,829
Deferred income	–	20,005	3,098
Redeemable shares with other preferential rights	2,381,327	–	–

	2,849,654	570,021	88,285

Current liabilities
Loans and borrowings	401,182	13,669	2,117
Trade and other payables	2,419,795	2,809,182	435,087
Contract liabilities	218,287	266,919	41,340
Lease liabilities	224,080	321,268	49,758
Deferred income	–	6,060	939
Current taxation	46,299	65,757	10,184

	3,309,643	3,482,855	539,425

Total liabilities	6,159,297	4,052,876	627,710

Total equity and liabilities	5,836,251	10,705,030	1,657,997

MINISO GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
*(Expressed in thousands, except for per share and per ADS data)*

	Three months ended June 30			Fiscal year ended June 30
	2020	2021		2020	2021
	(Unaudited)	(Unaudited)		(Audited)	(Unaudited)
	RMB’000	RMB’000	US$ ‘000	RMB’000	RMB’000	US$ ‘000

Continuing operations
Revenue	1,553,216	2,472,355	382,919	8,978,986	9,071,659	1,405,021
Cost of sales	(1,173,782)	(1,833,282)	(283,939)	(6,246,488)	(6,640,973)	(1,028,556)

Gross profit	379,434	639,073	98,980	2,732,498	2,430,686	376,465
Other income	33,668	4,052	628	37,208	52,140	8,075
Selling and distribution expenses	(273,231)	(282,824)	(43,804)	(1,190,477)	(1,206,782)	(186,907)
General and administrative expenses	(175,885)	(200,135)	(30,997)	(796,435)	(810,829)	(125,581)
Other net income/(loss)	18,542	21,922	3,395	45,997	(40,407)	(6,258)
Reversals of credit loss/(credit loss) on trade and other receivables	3,093	8,678	1,344	(25,366)	(20,832)	(3,226)
Impairment loss on non-current assets	(15,277)	(2,941)	(456)	(36,844)	(2,941)	(456)

Operating (loss)/profit	(29,656)	187,825	29,090	766,581	401,035	62,112
Finance income	8,609	8,743	1,354	25,608	40,433	6,262
Finance costs	(10,732)	(8,095)	(1,254)	(31,338)	(28,362)	(4,393)

Net finance (costs)/income	(2,123)	648	100	(5,730)	12,071	1,869
Fair value changes of paid-in capital subject to redemption and other preferential rights / redeemable shares with other preferential rights	(1,327)	–	–	(680,033)	(1,625,287)	(251,725)
Share of (loss)/profit of equity- accounted investee, net of tax	–	(3,186)	(493)	–	(4,011)	(621)

(Loss)/profit before taxation	(33,106)	185,287	28,697	80,818	(1,216,192)	(188,365)
Income tax expense	(41,685)	(74,137)	(11,482)	(210,949)	(213,255)	(33,029)

(Loss)/profit for the period from continuing operations	(74,791)	111,150	17,215	(130,131)	(1,429,447)	(221,394)
Discontinued operations
Loss for the period from discontinued operations, net of tax	32,541	–	–	(130,045)	–	–

(Loss)/profit for the period	(42,250)	111,150	17,215	(260,176)	(1,429,447)	(221,394)

Attributable to:
Equity shareholders of the Company	(48,763)	114,987	17,809	(262,267)	(1,415,010)	(219,158)
Non-controlling interests	6,513	(3,837)	(594)	2,091	(14,437)	(2,236)

(Loss)/earnings per share for ordinary shares
-Basic	(0.05)	0.095	0.01	(0.26)	(1.18)	(0.18)
-Diluted	(0.05)	0.094	0.01	(0.26)	(1.18)	(0.18)

(Loss)/earnings per share— Continuing operations
-Basic	(0.09)	0.095	0.01	(0.12)	(1.18)	(0.18)
-Diluted	(0.09)	0.094	0.01	(0.12)	(1.18)	(0.18)

(Loss)/Earnings per ADS
(Each ADS represents 4 Class A ordinary shares)
-Basic	(0.20)	0.380	0.06	(1.04)	(4.72)	(0.73)
-Diluted	(0.20)	0.376	0.06	(1.04)	(4.72)	(0.73)

(Loss)/earnings per ADS—Continuing operations
(Each ADS represents 4 Class A ordinary shares)
-Basic	(0.36)	0.380	0.06	(0.48)	(4.72)	(0.73)
-Diluted	(0.36)	0.376	0.06	(0.48)	(4.72)	(0.73)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(Expressed in thousands, except for per share data)

Three months ended June 30

Fiscal year ended June 30

2020

2021

2020

2021

(Unaudited)

(Audited)

(Unaudited)

RMB
‘000

US$
‘000

RMB
‘000

US$
‘000

(Loss)/profit for the period

(42,250)

111,150

17,215

(260,176)

(1,429,447)

(221,394)

Items that may be
reclassified subsequently
to profit or loss:

Exchange differences on
translation of financial
statements of foreign
operations

(277)

23,541

3,646

6,361

(16,548)

(2,563)

Other comprehensive
(loss)/income for the
period

(277)

23,541

3,646

6,361

(16,548)

(2,563)

Total comprehensive
(loss)/income for the
period

(42,527)

134,691

20,861

(253,815)

(1,445,995)

(223,957)

Attributable to:

Equity shareholders of the
Company

(50,518)

138,933

21,518

(256,583)

(1,429,621)

(221,421)

Non-controlling interests

7,991

(4,242)

(657)

2,768

(16,374)

(2,536)

RECONCILIATION OF NON-IFRS FINANCIAL MEASURE
*(Expressed in thousands, except for per share and per ADS data)*

	Three months ended June 30			Fiscal year ended June 30
	2020	2021		2020	2021
	(Unaudited)	(Unaudited)		(Audited)	(Unaudited)
	RMB’000	RMB’000	US$’000	RMB’000	RMB’000	US$’000

Reconciliation of profit/(loss) for the period to adjusted net profit:
(Loss)/profit for the period	(42,250)	111,150	17,215	(260,176)	(1,429,447)	(221,394)
Add back:
Fair value changes of paid-in capital subject to redemption and other preferential rights	1,327	–	–	680,033	1,625,287	251,725
Loss for the period from discontinued operations, net of tax	(32,541)	–	–	130,045	–	–
Equity-settled share-based payment expenses	100,634	30,959	4,795	364,380	281,319	43,571
Employee compensation expenses related to non- forfeitable dividends related to unvested restricted shares	–	–	–	19,664	–	–
Impairment loss on non-current assets	15,277	2,941	456	36,844	2,941	456

Adjusted net profit	42,447	145,050	22,466	970,790	480,100	74,358

Attributable to:
Equity shareholders of the Company	35,934	148,887	23,060	968,699	494,537	76,594
Non-controlling interests	6,513	(3,837)	(594)	2,091	(14,437)	(2,236)


Adjusted net earnings per share for ordinary shares ^[7]
-Basic	0.04	0.12	0.02	0.93	0.42	0.07
-Diluted	0.04	0.12	0.02	0.93	0.42	0.07

Adjusted net earnings per ADS
(Each ADS represents 4 Class A ordinary shares)
-Basic	0.16	0.48	0.07	3.72	1.68	0.26
-Diluted	0.16	0.48	0.07	3.72	1.68	0.26

^[7] The adjusted basic and diluted net earnings per share are computed using adjusted net profit attributable to the equity shareholders of the Company, and the number of ordinary shares used in GAAP basic and diluted (loss) / earnings per share calculation after retrospectively adjusting for the effect of Series A preferred shares issued by the Company that are deemed to have been converted into ordinary shares since July 1, 2019.

View original content:https://www.prnewswire.com/news-releases/miniso-group-announces-june-quarter-and-full-fiscal-year-2021-results-301358771.html

SOURCE MINISO Group Holding Limited

August 19, 2021 6:03 am

Mercurity Fintech Holding Inc. Announces Resignation of Company Director

PR Newswire

BEIJING, Aug. 19, 2021 /PRNewswire/ — Mercurity Fintech Holding Inc. (the “Company” or “MFH”) (Nasdaq: MFH) today announced that Miss Xiaoyu Li has resigned from her position of the Company’s Board of Directors due to personal reasons, effective August 18, 2021.

Miss. Alva Zhou, the Chairperson and Co-Chief Executive Officer, commented: “On behalf of the Board of Directors and our management team, I would like to express our sincere gratitude to Miss Li for all her contributions to the Company.”

Mr. Liu Hao, the Co-Chief Executive Officer and the Director of the Board, commented: “On behalf of the Board and management team, I would like to thank Miss Li for her contributions to the Company and we wish her every success in the future.”

Safe Harbor Statement

Contact:

Xingyan Gao

Mercurity Fintech Holding Inc.
[email protected]
Tel: +86 (10) 5360 6428

View original content:https://www.prnewswire.com/news-releases/mercurity-fintech-holding-inc-announces-resignation-of-company-director-301358631.html

SOURCE Mercurity Fintech Holding Inc.

August 19, 2021 6:03 am

Zepp Health Corporation Reports Second Quarter 2021 Unaudited Financial Results

PR Newswire

BEIJING, Aug. 19, 2021 /PRNewswire/ — Zepp Health Corporation (“Zepp” or the “Company”) (NYSE: ZEPP) today reported revenue of RMB1.8 billion (US$284.2 million), an increase of 61.4% from the same period last year; GAAP diluted net income per share of RMB0.35(US$0.05); and GAAP diluted net income per ADS of RMB1.41(US$0.22) for the second quarter ended June 30, 2021. Each ADS represents four (4) Class A ordinary shares.

“We were pleased to top the high end of our guidance range for the second quarter, which included an 81% increase in our own Amazfit and Zepp branded product revenue and a 53% increase in revenue from products designed and built for Xiaomi,” said Wang Huang, Chairman and CEO of Zepp Health. “Unit shipment volume for our own branded products grew 114% year-over-year in the second quarter, demonstrating continued expansion of our brands globally. Despite the drag of the pandemic on the industry, first half revenue from our own Amazfit and Zepp branded products increased 83% year-over-year, and in June, we were acknowledged by IDC that our Amazfit and Zepp smartwatch products have become one of the top four global adult smartwatch brands in its 2021Q1 report. Our confidence in the second half of 2021 is strengthend by the Company’s announcements at our mid-July developers conference of our third generation proprietary smart watch chip, the Huangshan 2s; a new watch OS for third-party apps; and blood pressure monitoring algorithm on our watches; which will give our products new features and functionalities that will appeal to many consumers.”

Added Chief Financial Officer, Leon Deng, “Second quarter results reflected strong growth of the Company’s own branded products, different timing this year for launch of Xiaomi’s new Mi Band product, easing of Covid restrictions in some geographies during the quarter, and continued expense control, all driving revenue growth and profitability.”

Second Quarter 2021 Financial Summary


	For the Three Months Ended		For the Six Months Ended
GAAP in millions, except for percentages and per share/ADS amounts	June 30, 2021	J une 30, 2020^[1]	June 30, 2021	June 30, 2020^[1]
Revenue RMB	1,835.1	1,137.3	2,982.4	2,225.7
Revenue USD	284.2	161.0	461.9	315.0
Gross Margin	22.0%	22.3%	22.2%	22.4%
Net income attributable to Zepp Health Corporation RMB	92.6	13.3	52.1	32.5
Adjusted net income attributable to Zepp Health Corporation RMB^[2]	132.5	19.1	103.4	44.7

Diluted net income per share RMB	0.35	0.05	0.20	0.13
Diluted net income per ADS USD	0.22	0.03	0.12	0.07
Adjusted diluted net income per share RMB^[3]	0.50	0.07	0.39	0.17
Adjusted diluted net income per ADS USD	0.31	0.04	0.24	0.10
Units Shipped	11.5	8.9	17.8	16.5

^[1] The USD numbers in 2020 are referenced with the prior 6-K disclosures.

^[2] Adjusted net income attributable to Zepp Health Corporation is a non-GAAP measure, which excludes share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

^[3] Adjusted diluted net income is the abbreviation of Adjusted net income attributable to Zepp Health Corporation, which is a non-GAAP measure and excludes share-based compensation expenses attributable to Zepp Health Corporation, and is used as the numerator in computation of adjusted basic and diluted net income per ADS attributable to Zepp Health Corporation.

Second Quarter 2021 Financial Results

Revenue

Total units shipped in the second quarter of 2021 increased by 29.2% year-over-year to 11.5 million, compared with 8.9 million in the second quarter of 2020. This was driven by a 114.3% increase in unit shipments of Amazfit and Zepp-branded products and a 22.0% increase in unit shippments of Xiaomi wearable products.

Revenues for the second quarter of 2021 reached RMB1.8 billion (US$284.2 million), an increase of 61.4% from the second quarter of 2020. In the second quarter of 2021, revenue from both Xiaomi wearable products and from self-branded products increased compared with the same period in 2020, primarily driven by the launch of Mi Band 6 and sales of the Company’s popular premium GT series, basic Bip and Pop models and rugged T-Rex.

Both sequential and year-over-year quarterly revenue changes can be affected by fluctuations in seasonal purchase patterns as well as by timing of new product introductions. The Company launched Mi Band 6 in the April of 2021 and Mi Band 5 in June of 2020.

Impact of COVID-19 on Our Business

The global impact of the COVID-19 pandemic continued in the second quarter 2021, although abating in varying degrees in different markets as vaccinations became more widely available and some restrictions were lifted. However, given the current state of the COVID-19 virus mutation at the time of this release, the Company cannot predict the potential, if any, future negative impact on market conditions or the Company’s operations.

Gross Margin

Gross margin in the second quarter of 2021 was 22.0%, compared with 22.3% in the same period of 2020. The gross margins on self-branded products are generally higher than Xiaomi wearable products. In line with previous Mi Band product launches, the newly introduced Mi Band 6 in this quarter accounted for a larger increase in Xiaomi unit volume shipped in the quarter. Gross margin and gross profit are affected by product mix as different products have different margin contributions. These changes can also be influenced by the stage of the product in its lifecycle, product iterations and new product introductions.

Research & Development

Research and development expense in the second quarter of 2021 was RMB160.3 million, increasing 36.8% year-over year, and comprising 8.7% of revenue, versus 10.3% in the same period last year. The increase was primarily driven by increased investment in R&D talents associated with developing new core proprietary technologies and new products.

Sales & Marketing

Sales and Marketing expense in the second quarter of 2021 was RMB104.7 million, increasing 46.7% year-over-year, and comprising 5.7% of revenue, compared with 6.3% of revenue in the same period in 2020. The increase was driven by higher salary and wages costs for marketing and sales personnel as well as advertising and promotional expenses to expand product recognition globally.

General & Administrative

General and Administrative expense was RMB66.4 million in the second quarter of 2021, increasing 19.9% year-over-year, and comprising 3.6% of revenue, compared with 4.9% in the same period in 2020. The increase was mainly attributable to higher personel compensation costs for retaining current employees to support company’s long-term growth together.

Operating Expenses and Net Income

Total Operating Expense for the second quarter of 2021 was RMB331.4 million, an increase of RMB87.5 million from the same period in 2020, comprising 18.1% of revenue, compared with 21.5% in the second quarter of 2020.

Beginning in the third quarter of 2020, the Company adopted a balanced approach to expense control while still maintaining an investment priority in new technologies, new product development and global growth capabilities.

The operating expenses increase was mainly attributed to share-base compensation. In the second quarter 2021, the company granted a new batch of restricted shares and options with 4 to 5-year vested period to the employees, causing a RMB34 million increase to total operating expenses, with the aim to motivate its employees to work together toward long-term strategic goal of the Company.

Operating income for the second quarter of 2021 was RMB71.6 million, an increase of 660.8% from RMB9.4 million for the same period in 2020.

Net income attributable to Zepp Health Corporation for the second quarter of 2021 was RMB92.6 million, compared with RMB13.3 million in the second quarter of 2020. The increase was partially attributable to RMB13.5 million investment income and RMB24.8 net income from equity method investments.

Liquidity and Capital Resources

As of June 30, 2021, the Company had cash and cash equivalents of RMB1,392.6 million (US$215.7 million), compared with RMB2,649.2 million as of June 30, 2020, and RMB1,090.5 million as of March 31, 2021.

Outlook

For the third quarter of 2021, the management of the Company currently expects:

– Net revenues to be between RMB1.6 billion and RMB1.8 billion, compared with RMB2.2 billion in the third quarter of 2020.

This outlook reflects continuing uncertainty pertaining to the potential affects of the COVID-19 pandemic on sales and on electronic component delays, as well as expected sales seasonality of both self-branded and Xiaomi products. It is based on the current market conditions and reflects the Company management’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

The Company’s management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, August 19, 2021 (8:00 p.m. Beijing Time on August 19, 2021) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

US (Toll Free):	+1-888-346-8982
International:	+1-412-902-4272
Mainland China (Toll Free):	400-120-1203
Hong Kong (Toll Free):	800-905-945
Hong Kong:	+852-3018-4992

Participants should dial-in at least 10 minutes before the scheduled start time and ask to be connected to the call for “Zepp Health Corporation.”

Additionally, a live and archived webcast of the conference call will be available at https://ir.zepp.com/investor.

A telephone replay will be available one hour after the call until August 26, 2021 by dialing:

A
bout Zepp Health Corporation (NYSE: ZEPP)

US Toll Free:		+1-877-344-7529
International:		+1-412-317-0088
Replay Passcode:		10159349

Zepp Health changed its name from Huami Corporation (HMI) on February 25, 2021 to emphasize its health focus with a name that resonates across languages and cultures globally. The Company’s mission continues to be connecting health with technology. Since its inception in 2013, Zepp Health has developed a platform of proprietary technology including AI chips, biometric sensors, and data algorithms, which drive a broadening line of smart health devices for consumers, and data analytics services for population health. Zepp Health is one of the largest global developers of smart wearable health and consumer fitness devices, shipping 46 million units in 2020. Zepp Health Corporation is based in Hefei, China, with U.S. operations, Zepp Health USA, based in Cupertino, Calif..

Use of Non-GAAP Measures

We use adjusted net income, a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expenses, and such adjustment has no impact on income tax. Adjusted net income attributable to Zepp Health Corporation is a non-GAAP measure, which excludes share-based compensation expenses attributable to Zepp Health Corporation, and is used as the numerator in computation of adjusted net income per share and per ADS attributable to Zepp Health Corporation.

We believe that adjusted net income and adjusted net income attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income and net income attributable to Zepp Health Corporation. We believe that adjusted net income and adjusted net income attributable to Zepp Health Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted net income and adjusted net income attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income, basic and diluted net income per share and per ADS attributable to Zepp Health Corporation. or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted net income and adjusted net income attributable to ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate

The Company’s business is primarily conducted in China and the significant majority of revenues generated are denominated in RMB. This announcement contains currency conversions of RMB amounts into US$ solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.4566 to US$1.00, the effective noon buying rate for June 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2021, or at any other rate.

Safe Harbor Statement

For investor and media inquiries, please contact:

In China:
Zepp Health Corporation
Grace Yujia Zhang
Email: [email protected]

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
Email: [email protected]

In the United States:
Zepp Health Corporation
Brad Samson
Tel: 1+714-955-3951
Email: [email protected]

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	As of December 31,	As of June 30,
	2020	2021
	RMB	RMB	US$

Assets
Current assets:
Cash and cash equivalents	2,273,349	1,392,572	215,682
Restricted cash	2,401	1,418	220
Term deposit	5,000	5,000	774
Accounts receivable	298,038	422,346	65,413
Amounts due from related parties, current	860,213	913,451	141,476
Inventories, net	1,217,537	1,305,510	202,198
Short-term investments	18,430	19,045	2,950
Prepaid expenses and other current assets	152,898	152,801	23,666
Total current assets	4,827,866	4,212,143	652,379

Property, plant and equipment, net	124,619	149,308	23,125
Intangible asset, net	145,213	139,245	21,566
Goodwill	62,515	61,860	9,581
Long-term investments	443,986	1,512,922	234,322
Deferred tax assets	120,190	136,361	21,120
Other non-current assets	28,165	20,094	3,112
Non-current operating lease right-of-use assets	151,165	129,816	20,106
Total assets	5,903,719	6,361,749	985,311

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	As of December 31,	As of June 30,
	2020	2021
	RMB	RMB	US$

Liabilities
Current liabilities:
Accounts payable	1,951,335	1,465,456	226,970
Advance from customers	42,502	31,336	4,853
Amount due to related parties, current	11,185	23,028	3,567
Accrued expenses and other current liabilities	252,275	204,221	31,630
Income tax payables	27,706	15,014	2,325
Notes payable	–	4,525	701
Short-term bank borrowings	504,671	687,789	106,525
Total current liabilities	2,789,674	2,431,369	376,571
Deferred tax liabilities	22,374	25,870	4,007
Long-term borrowing	60,000	727,395	112,659
Other non-current liabilities	185,168	240,915	37,313
Non-current operating lease liabilities	116,245	94,698	14,667
Total liabilities	3,173,461	3,520,247	545,217

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)


	As of December 31,	As of June 30,
	2020	2021
	RMB	RMB	US$

Equity
Ordinary shares	157	158	24
Additional paid-in capital	1,552,109	1,613,095	249,837
Accumulated retained earnings	1,133,368	1,185,510	183,612
Accumulated other comprehensive income	44,624	38,712	5,997
Total Zepp Health Corporation shareholders’ equity	2,730,258	2,837,475	439,470
Noncontrolling interests	–	4,027	624
Total equity	2,730,258	2,841,502	440,094
Total liabilities and equity	5,903,719	6,361,749	985,311

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	For the Three Months Ended June 30,
	2020	2021
	RMB	RMB	US$

Revenues	1,137,274	1,835,141	284,227
Cost of revenues	(883,891)	(1,432,105)	(221,805)
Gross profit	253,383	403,036	62,422
Operating expenses:
Selling and marketing	(71,342)	(104,686)	(16,214)
General and administrative	(55,423)	(66,448)	(10,291)
Research and development	(117,207)	(160,304)	(24,828)
Total operating expenses	243,972	331,438	51,333
Operating income	9,411	71,598	11,089
Other income and expenses:
Investment income	–	13,507	2,092
Interest income	13,667	4,525	701
Interest expense	(8,049)	(10,342)	(1,602)
Other income/(expenses), net	9,186	(216)	(33)
Income before income tax and income from equity method investment	24,215	79,072	12,247
Income tax expenses	(2,486)	(11,607)	(1,798)
Income before (loss)/income from equity method investments	21,729	67,465	10,449
Net (loss)/income from equity method investments	(7,611)	24,836	3,847
Net income	14,118	92,301	14,296
Less: Net income/(loss) attributable to noncontrolling interest	811	(269)	(42)
Net income attributable to Zepp Health Corporation	13,307	92,570	14,338
Net income per share attributable to Zepp Health Corporation
Basic income per ordinary share	0.05	0.37	0.06
Diluted income per ordinary share	0.05	0.35	0.05

Net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic	0.21	1.47	0.23
ADS – diluted	0.21	1.41	0.22

Weighted average number of shares used in computing net income per share
Ordinary share – basic	247,828,507	251,813,617	251,813,617
Ordinary share – diluted	259,364,320	263,499,745	263,499,745

Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	For the Three Months Ended June 30,
	2020	2021
	RMB	RMB	US$

Net income attributable to Zepp Health Corporation	13,307	92,570	14,338
Share-based compensation expenses	5,835	39,922	6,183
Adjusted net income attributable to Zepp Health Corporation^[2]	19,142	132,492	20,521

Adjusted net income per share attributable to Zepp Health Corporation
Adjusted basic income per ordinary share	0.08	0.53	0.08
Adjusted diluted income per ordinary share	0.07	0.50	0.08

Adjusted net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic	0.31	2.10	0.33
ADS – diluted	0.30	2.01	0.31

Weighted average number of shares used in computing adjusted net income per share
Ordinary share – basic	247,828,507	251,813,617	251,813,617
Ordinary share – diluted	259,364,320	263,499,745	263,499,745

Share-based compensation expenses included are follows:
Cost of revenues	(61)	–	–
Selling and marketing	632	6,860	1,062
General and administrative	3,833	6,003	930
Research and development	1,431	27,059	4,191
Total	5,835	39,922	6,183

Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	For the Six Months Ended June 30,
	2020	2021
	RMB		RMB		US$

Revenues	2,225,735	2,982,404		461,916
Cost of revenues	(1,727,792)	(2,321,163)		(359,502)
Gross profit	497,943	661,241		102,414
Operating expenses:
Selling and marketing	(126,185)	(195,473)		(30,275)
General and administrative	(106,306)	(131,733)		(20,403)
Research and development	(235,543)	(312,634)		(48,421)
Total operating expenses	468,034	639,840		99,099
Operating income	29,909	21,401		3,315
Other income and expenses:
Investment income	–	13,507		2,092
Interest income	21,338	10,253		1,588
Interest expense	(8,773)	(16,990)		(2,631)
Other income, net	755	2,285		354
Gain from fair value change of long-term investment	1,293	–		–
Income before income tax and income from equity method investment	44,522	30,456		4,718
Income tax expenses	(4,519)	(4,009)		(621)
Income before loss from equity method investments	40,003	26,447		4,097
Net (loss)/income from equity method investments	(7,943)	25,293		3,917
Net income	32,060	51,740		8,014
Less: Net loss attributable to noncontrolling interest	(415)	(403)		(62)
Net income attributable to Zepp Health Corporation	32,475	52,143		8,076
Net income per share attributable to Zepp Health Corporation
Basic income per ordinary share	0.13	0.21		0.03
Diluted income per ordinary share	0.13	0.20		0.03

Net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic	0.52	0.83		0.13
ADS – diluted	0.50	0.79		0.12

Weighted average number of shares used in computing net income per share
Ordinary share – basic	247,742,838	251,306,762		251,306,762
Ordinary share – diluted	259,456,193	263,397,411		263,397,411

Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)

	For the Six Months Ended June 30,
	2020	2021
	RMB	RMB	US$

Net income attributable to Zepp Health Corporation	32,475	52,143	8,076
Share-based compensation expenses	12,213	51,300	7,946
Adjusted net income attributable to Zepp Health Corporation ^[2]	44,688	103,443	16,022

Adjusted net income per share attributable to Zepp Health Corporation
Adjusted basic income per ordinary share	0.18	0.41	0.06
Adjusted diluted income per ordinary share	0.17	0.39	0.06

Adjusted net income per ADS (4 ordinary shares equal to 1 ADS)
ADS – basic	0.72	1.65	0.26
ADS – diluted	0.69	1.57	0.24

Weighted average number of shares used in computing adjusted net income per share
Ordinary share – basic	247,742,838	251,306,762	251,306,762
Ordinary share – diluted	259,456,193	263,397,411	263,397,411

Share-based compensation expenses included are follows:
Cost of revenues	(54)	–	–
Selling and marketing	1,264	7,020	1,087
General and administrative	7,930	14,221	2,203
Research and development	3,073	30,059	4,656
Total	12,213	51,300	7,946

View original content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-second-quarter-2021-unaudited-financial-results-301358757.html

SOURCE Zepp Health Corp.

August 19, 2021 6:03 am

Volta Charging Launches PredictEV™ Product To Power Data-Driven EV Charging Planning For Energy Industry

Multi-Year Agreement in Place for Southern Company to Utilize Volta Charging Software in Its Transportation Electrification Programs

PR Newswire

SAN FRANCISCO, Aug. 19, 2021 /PRNewswire/ — Volta Industries, Inc. (“Volta Charging”), an industry leader in commerce-centric electric vehicle (“EV”) charging networks, which has entered into a definitive agreement for a business combination with Tortoise Acquisition Corp. II (NYSE: SNPR), today announced the launch of its PredictEV™ product, a machine learning and artificial intelligence (“AI”) solution for infrastructure planning, with a multi-year commitment from Southern Company, the second largest utility company in the United States. The PredictEV™ product was created to support Volta Charging’s commerce-centric, electric vehicle charging network and is now available to corporate, public agency, government, consulting and utility organizations, like Southern Company, planning to meet the coming demand for EV charging infrastructure development.

Founded on the premise that the electrification of mobility is likely to be a transformational shift, Volta Charging builds and operates a nationwide EV charging network that has among the best utilization per station in the EV charging industry for the United States. Centered around capturing new spending habits expected to result from the shift to electric vehicles, Volta Charging seeks to transform the fueling industry by building open-network charging stations in locations where drivers already spend their time and money, including grocery stores, pharmacies and other retail locations.

Southern Company, which serves more than 4.3 million electric power customers in Georgia, Alabama and Mississippi, expects to use the product to guide its plans to meet rising EV demand and to create new EV product offerings for its customers. This commitment expands upon Volta’s existing collaboration with Southern Company’s subsidiary, Alabama Power, to support data-driven EV infrastructure planning in its service territory.

“Data and AI influence every aspect of Volta’s business — from driver experience, to media strategy, to network development,” said Praveen Mandal, Chief Technology Officer at Volta Charging. “We are excited to share our data-driven insights and foresights with partners like Southern Company that are as passionate about driving the EV market forward as we are. These partnerships have the capacity to transform the decision making that underpins our joint mission of creating a carbon-free transportation future.”

Using advanced AI and analytics, the PredictEV™ product aggregates disparate data sets to turn them into actionable insights for EV stakeholders. The proprietary, patented-pending product analyzes local mobility, demographic, corporate, and site-specific data at scale to identify key planning drivers such as suitable vehicle charging locations, the right mix of charging infrastructure (Level 2 v. DC Fast Charging), and expected EV adoption in a particular geography. Volta’s PredictEV™ product is now available to a variety of EV stakeholders, including corporations, state and local governments, Departments of Transportation, electric power utilities, and other EV stakeholders who are responding to the increase in EV adoption and working to support transportation electrification within their jurisdictions.

“Southern Company aims to be a leader in electric transportation solutions because it is good for businesses, communities, and the customers we serve,” said Chris Cummiskey, Executive Vice President, Chief Commercial Officer and Customer Solutions Officer at Southern Company. “Volta’s PredictEV™ product allows us to inform and advise our customers on the right EV charging options for their needs, and to continue building the fueling network of the future for our customers.”

Prior to its official launch, Volta’s PredictEV™ product has already received recognition from the marketplace, including being named a Finalist in the Energy category of Fast Company’s 2021 World Changing Ideas Awards, as well as a Stevie Award winner. In addition, Volta Charging previously announced its strategic partnership with StreetLight Data, a leader in big data analytics for mobility, to use their combined analytics for the intelligent deployment of EV infrastructure by leveraging the PredictEV™ product.

For more information, visit www.voltacharging.com/predictev/

About Volta Charging
Volta Charging is an industry leader in commerce-centric EV charging networks. Volta Charging’s vision is to build EV charging networks that capitalize on and catalyze the shift from combustion-powered miles to electric miles by placing stations where consumers live, work, shop and play. By leveraging a data-driven understanding of driver behavior to deliver EV charging solutions that fit seamlessly into drivers’ daily routines, Volta Charging’s goal is to benefit consumers, brands and real-estate locations while helping to build the infrastructure of the future. As part of Volta Charging’s unique EV charging offering, its stations allow it to enhance its site hosts’ and strategic partners’ core commercial interests, creating a new means for them to benefit from the transformative shift to electric mobility. To learn more, visit www.voltacharging.com.

In February 2021, Volta Charging and Tortoise Acquisition Corp. II (NYSE: SNPR), a publicly traded special purpose acquisition company with a strategic focus on energy sustainability and decarbonizing transportation, announced they entered into a business combination agreement. Upon the closing of the transaction, which remains subject to customary closing conditions, the combined entity will be named Volta Inc. and remain on the New York Stock Exchange under the new ticker symbol “VLTA”.

View original content to download multimedia:https://www.prnewswire.com/news-releases/volta-charging-launches-predictev-product-to-power-data-driven-ev-charging-planning-for-energy-industry-301358551.html

SOURCE Volta Inc.

August 19, 2021 6:03 am

Yatsen to Announce Second Quarter 2021 Financial Results on August 26, 2021

PR Newswire

GUANGZHOU, China, Aug. 19, 2021 /PRNewswire/ — Yatsen Holding Limited (“Yatsen” or the “Company”) (NYSE: YSG), a leading Chinese beauty company, today announced that it will release its second quarter 2021 financial results on Thursday, August 26, 2021, before the open of the U.S. markets.

The Company will hold a conference call on Thursday, August 26, 2021 at 7:30 am Eastern Time (7:30 pmBeijing/Hong Kong Time) to discuss the financial results. Listeners may access the call by dialing the following numbers:

United States (toll free):	+1-888-346-8982
International:	+1-412-902-4272
Mainland China (toll free):	400-120-1203
Hong Kong (toll free):	800-905-945
Hong Kong:	+852-3018-4992
Conference ID:	10159579

A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.yatsenglobal.com/.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until September 2, 2021:

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	10159579

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading player in China’s beauty market with a mission to create an exciting new journey of beauty discovery for consumers in China and around the world. Founded in 2016, the Company has launched and acquired seven color cosmetics and skincare brands including Perfect Diary, Little Ondine, Abby’s Choice, Galénic, DR.WU (its mainland China business), Eve Lom and Pink Bear. The Company’s flagship brand, Perfect Diary, is one of the top color cosmetics brands in China in terms of online retail sales value. Leveraging its digitally native direct-to-customer business model, the Company has built a platform with core capabilities which enables it to launch and scale multiple brands quickly while offering a wide selection of products to a growing variety of customers. The Company reaches and engages with customers directly both online and offline, with expansive presence across all major e-commerce, social and content platforms in China.

For more information, please visit http://ir.yatsenglobal.com/

For investor and media inquiries, please contact:

In China:

Yatsen Holding Limited
Investor Relations
E-mail: [email protected]

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: [email protected]

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

View original content:https://www.prnewswire.com/news-releases/yatsen-to-announce-second-quarter-2021-financial-results-on-august-26-2021-301358773.html

SOURCE Yatsen Holding Limited

August 19, 2021 6:03 am

Baozun Announces Second Quarter 2021 Unaudited Financial Results

SHANGHAI, China, Aug. 19, 2021 (GLOBE NEWSWIRE) — Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“Baozun” or the “Company”), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced its unaudited financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Financial Highlights

Total net revenues were RMB2,304.1 million (US$¹356.9 million), an increase of 7.1% year-over-year.
Income from operations was RMB106.6 million (US$16.5 million), compared with RMB160.6 million in the same quarter of last year. Operating margin was 4.6%, compared with 7.5% in the same quarter of last year.
Non-GAAP income from operations² was RMB161.6 million (US$25.0 million), compared with RMB187.1 million in the same quarter of last year. Non-GAAP operating margin was 7.0%, compared with 8.7% in the same quarter of last year.
Net income attributable to ordinary shareholders of Baozun Inc. was RMB 79.8 million (US$12.4 million), a decrease of 33.4% year-over-year.
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc.³ was RMB150.8 million (US$23.4 million), an increase of 3.3% year-over-year.
Basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per American Depositary Share (“ADS⁴”) were RMB1.08 (US$0.17) and RMB1.06 (US$0.16), respectively, compared with RMB2.04 and RMB2.00, respectively, for the same period of 2020.
Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS⁵ were RMB2.04 (US$0.32) and RMB2.01 (US$0.31), respectively, compared with RMB2.48 and RMB2.43, respectively, for the same period of 2020.

Second Quarter 2021 Operational Highlights

Total Gross Merchandise Volume (“GMV”)⁶ was RMB15,727.2 million, an increase of 23.3% year-over-year.
Distribution GMV⁷ was RMB1,094.1 million, an increase of 5.4% year-over-year.
Non-distribution GMV⁸ was RMB14,633.1 million, an increase of 24.9% year-over-year.
GMV generated from non-TMALL marketplaces and channels accounted for approximately 31.7% of total GMV during the quarter, compared with 24.7% for the same period of 2020.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “Whilst the impact of the Better Cotton Initiative continues to sweep through the industry, especially affecting our international brand partners in apparel, we have continued to execute on our strategic medium-term plan to deliver sustainable growth. In particular, backed by our comprehensive infrastructure and service offerings, we have made significant inroads in innovating and executing our omni-channel strategy and further penetrating into the luxury sector. In addition, as part of the transformation of our business, we started to build a technology-powered middle-office, which we believe will improve our service quality and reduce operational cost meaningfully in the long run. While we anticipate ongoing headwinds from the Better Cotton Initiative in the second half of this year, online shopping increasingly pervades people’s daily life, therefore we believe the comprehensive suite of e-commerce solutions that we deploy for our brand partners will improve the shopping experience for consumers.”

Mr. Arthur Yu, Chief Financial Officer of Baozun commented, “Despite the headwinds of the Better Cotton Initiative, we still managed to deliver a solid year-on-year GMV growth of 23.3% and net revenue growth of 7.1% year-over-year. We also achieved positive operating cash flow with non-GAAP income from operations of RMB161.6 million, a clear indication of our sound financial status and strong cash flow management. Meanwhile, we made substantial progress in extracting value from the various acquisitions and strategic alliances this year. Going forward, we intend to continue to deploy our capital to facilitate our strategic medium-term plan to boost our long-term sustainable and profitable growth. We believe the progress we have made and our groundwork thus far, has positioned us to further enhance our value proposition.”

Second Quarter 2021 Financial Results

Total net revenues were RMB2,304.1 million (US$356.9 million), an increase of 7.1% from RMB 2,152.1 million in the same quarter of last year.

Product sales revenue was RMB972.1 million (US$150.6 million), an increase of 4.8% from RMB 927.8 million in the same quarter of last year. The increase was primarily attributable to the acquisition of new brand partners and the increased popularity of brand partners’ products, partially offset by slower growth in personal-care products in appliances category.

Services revenue was RMB1,332.0 million (US$206.3 million), an increase of 8.8% from RMB1,224.3 million in the same quarter of last year. The increase was primarily attributable to the growth of the Company’s consignment model and service fee model, partially offset by decline of sales in sportswear sector as impacted by the Better Cotton Initiative during the quarter.

Total operating expenses were RMB2,197.5 million (US$340.3 million), compared with RMB 1,991.4 million in the same quarter of last year.

Cost of products was RMB814.6 million (US$126.2 million), compared with RMB775.8 million in the same quarter of last year. The increase was primarily due to higher costs associated with an increase in product sales revenue.
Fulfillment expenses were RMB560.4 million (US$86.8 million), compared with RMB575.3 million in the same quarter of last year. The decrease was primarily due to a decline in freight expenses due to the lower number of outbound orders due to the impact of the Better Cotton Initiative, especially for our brand partners in apparel categories, as well as efficiency improvements.
Sales and marketing expenses were RMB648.2 million (US$100.4 million), compared with RMB522.0 million in the same quarter of last year. The increase was in line with GMV growth and an increase in digital marketing services, which was partially offset by efficiency improvements.
Technology and content expenses were RMB115.4 million (US$17.9 million) compared with RMB102.3 million in the same quarter of last year. The increase was mainly due to growth in GMV and the Company’s ongoing investment in technological innovation and productization, which was partially offset by the Company’s cost control initiatives and efficiency improvements.
General and administrative expenses were RMB98.0 million (US$15.2 million), compared with RMB53.9 million in the same quarter of last year. The increase was primarily due to a rise in staff costs for the Company’s investment in talent recruitment, especially for its growing omni-channel services, and the modification of compensation packages to retain and attract the best talents in the industry, an increase in professional fees related to the Company’s recent M&A activities, an increase in rental expenses for the Company’s new headquarters, and bad debt provision for accounts receivable due from one customer, all of which were partially offset by cost control initiatives.

Income from operations was RMB106.6 million (US$16.5 million), a decrease of 33.6% compared with RMB160.6 million in the same quarter of last year. Operating margin was 4.6%, compared with 7.5% in the same quarter of last year.

Non-GAAP income from operations was RMB161.6 million (US$25.0 million), a decrease of 13.6% compared with RMB187.1 million in the same quarter of last year. Non-GAAP operating margin was 7.0%, compared with 8.7% in the same quarter of last year.

Net income attributable to ordinary shareholders of Baozun Inc. was RMB79.8 million (US$12.4 million), a decrease of 33.4% compared with RMB119.8 million in the same quarter of last year. Basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB1.08 (US$0.17) and RMB1.06 (US$0.16), respectively, compared with RMB2.04 and RMB2.00, respectively, in the same period of 2020.

Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB150.8 million (US$23.4 million), an increase of 3.3% compared with RMB146.0 million in the same quarter of last year. Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB2.04 (US$0.32) and RMB2.01 (US$0.31), respectively, compared with RMB2.48 and RMB2.43, respectively, in the same period of 2020.

As of June 30, 2021, the Company had RMB4,534.2 million (US$702.3 million) in cash, cash equivalents, restricted cash and short-term investments, compared with RMB5,179.9 million as of December 31, 2020.

Share Repurchase Program Updates

On May 18, 2021, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$125 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing three Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from May 18, 2021. As of June 30, 2021, the Company had repurchased an aggregate of 344,428 ADSs for approximately US$12.5 million under this program.

Recent Developments

Acquisition of eFashion

On June 28, 2021, the Company announced that it had signed a definitive agreement to acquire 100% equity interest in Shanghai Yi Shang Network Information Co Ltd (“eFashion China”), a leading provider of e-commerce solutions for fashion brands in China, in an all-cash transaction. The acquisition positions the Company strongly to further penetrate the apparel category and reinforce its leadership. Founded in 2008 and headquartered in Shanghai, eFashion China is an e-commerce solution provider that is focused on bringing international fashion brands to China. It provides brands with one-stop e-commerce solutions, including brand consulting, store operation, digital marketing, IT solutions and customer service. It has established itself as one of the key players in China’s branded apparel e-commerce space. It currently serves many well-known international brands, including international premium fashion, sportswear, and luxury brands. The acquistion is expected to be completed in or around September 2021. After the completion of the acquisition, eFashion China will serve as a sub-brand of Baozun and the companies will combine their comprehensive advantages to capture the growth potential of promising brands.

Strategic Partnership with Cainiao

On July 22, 2021, the Company and its wholly-owned subsidiary Baotong Inc. (“Baotong”) signed a letter of intent with Cainiao for Cainiao’s equity investment in Baotong, the Company’s warehousing and fulfillment solution subsidiary. Baozun, Baotong and Cainiao also entered into a Letter of Intent of Business Cooperation Agreement to further explore and develop brand e-commerce opportunities. The three companies will cooperate to develop competitive solutions in customized, high-value and digitalized logistics services. Baotong may also provide operational and technological management and consulting services, to Cainiao’s broader customer base. The Company and Baotong will leverage Cainiao’s national logistics expertise and technology to greatly improve their cost structure and enrich their service portfolio.

Conference Call

The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Thursday, August 19, 2021 (7:30 p.m. Beijing time on the same day).

Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants wishing to attend the call must preregister online before they can receive the dial-in numbers. Preregistration may require a few minutes to complete. The Company would like to apologize for any inconvenience caused by not having an operator as a result of COVID-19.

Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/3091935. Once preregistration has been completed, participants will receive dial-in numbers, the passcode, and a unique access PIN.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through 09:59 p.m. Beijing Time, August 27, 2021.

Dial-in numbers for the replay are as follows:
International Dial-in	+61-2-8199-0299
U.S. Toll Free	+1-855-452-5696
Passcode:	3091935#

A live and archived webcast of the conference call will be available on the Investor Relations section of Baozun’s website at http://ir.baozun.com/.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS, as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Non-GAAP income from operations is income from operations excluding the impact of share-based compensation expenses and amortization of intangible assets resulting from business acquisition. Non-GAAP operating margin is non-GAAP income from operations as a percentage of total net revenues. Non-GAAP net income is net income excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss. Non-GAAP net margin is non-GAAP net income as a percentage of total net revenues. Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. is net income attributable to ordinary shareholders of Baozun Inc. excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, and unrealized investment loss. Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS is non-GAAP net income attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating net income per ordinary share multiplied by three.

The Company presents the non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s financial and operating performance and formulate business plans. Non-GAAP income from operations enables the Company’s management to assess the Company’s financial and operating results without considering the impact of share-based compensation expenses and amortization of intangible assets resulting from business acquisition. Non-GAAP net income enables the Company’s management to assess the Company’s financial and operating results without considering the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss. Such items are non-cash expenses that are not directly related to the Company’s business operations. Share-based compensation expenses represent non-cash expenses associated with share options and restricted share units the Company grants under the share incentive plans. Amortization of intangible assets resulting from business acquisition represents non-cash expenses associated with intangible assets acquired through one-off business acquisition. Unrealized investment loss represents non-cash expenses associated with the change in fair value of the equity investment. The Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of the Company’s financial and operating performance.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders of Baozun Inc., and non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP income from operations and non-GAAP net income. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS for the period should not be considered in isolation from or as an alternative to income from operations, operating margin, net income, net margin, net income attributable to ordinary shareholders of Baozun Inc. and net income attributable to ordinary shareholders of Baozun Inc. per ADS, or other financial measures prepared in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliations of GAAP and Non-GAAP Results.”

Safe Harbor Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance,” “going forward,” “outlook” and similar statements. Statements that are not historical facts, including quotes from management in this announcement, statements about the Company’s strategies and goals and consummation or benefits of planned transactions, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s operations and business prospects; the Company’s business and operating strategies and its ability to implement such strategies; the Company’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; the Company’s ability to control costs; the Company’s dividend policy; changes to regulatory and operating conditions in the industry and geographical markets in which the Company operates; and other risks and uncertainties. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission and the Company’s announcements, notice or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under the applicable law.

About Baozun Inc.

Baozun Inc. is the leader and a pioneer in the brand e-commerce service industry in China. Baozun empowers a broad and diverse range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omni-channel coverage and technology-driven solutions. Its integrated one-stop solutions address all core aspects of the e-commerce operations covering IT solutions, online store operations, digital marketing, customer services, and warehousing and fulfillment.

For more information, please visit http://ir.baozun.com.

For investor and media inquiries, please contact:

Baozun Inc.

Ms. Wendy Sun
Email: [email protected]

Christensen

In China
Mr. Rene Vanguestaine
Phone: +852-6686-1376
E-mail: [email protected]

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

Baozun Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	As of
	December 31, 2020	June 30, 2021	June 30, 2021
	RMB	RMB	US$
ASSETS
Current assets
Cash and cash equivalents	3,579,665	3,391,749	525,315
Restricted cash	151,354	177,549	27,499
Short-term investments	1,448,843	964,864	149,438
Accounts receivable, net	2,188,977	1,994,697	308,939
Inventories, net	1,026,038	991,645	153,586
Advances to suppliers	284,776	238,548	36,946
Prepayments and other current assets	438,212	482,030	74,657
Amounts due from related parties	40,935	47,479	7,354
Total current assets	9,158,800	8,288,561	1,283,734

Non-current assets
Investments in equity investees	53,342	455,336	70,523
Property and equipment, net	430,089	505,133	78,235
Intangible assets, net	146,373	303,343	46,982
Land use right, net	41,541	41,028	6,354
Operating lease right-of-use assets	524,792	892,987	138,306
Goodwill	13,574	213,426	33,055
Other non-current assets	51,531	93,363	14,461
Deferred tax assets	54,649	51,543	7,983
Total non-current assets	1,315,891	2,556,159	395,899

Total assets	10,474,691	10,844,720	1,679,633

Baozun Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)

	As of
	December 31, 2020		June 30, 2021		June 30, 2021
	RMB		RMB		US$

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	421,562		515,082		79,776
Notes payable	500,820		535,888		82,998
Income tax payables	72,588		22,802		3,532
Accrued expenses and other current liabilities	991,180		565,521		87,588
Amounts due to related parties	44,997		89,212		13,817
Current operating lease liabilities	165,122		247,160		38,280
Total current liabilities	2,196,269		1,975,665		305,991

Non-current liabilities
Long-term loan	1,762,847		1,755,164		271,840
Deferred tax liabilities	2,538		35,218		5,455
Long-term operating lease liabilities	370,434		678,601		105,102
Other non-current liabilities	–		92,233		14,285
Total non-current liabilities	2,135,819		2,561,216		396,682

Total liabilities	4,332,088		4,536,881		702,673

Redeemable non-controlling interests	9,000		–		–

Baozun Inc. shareholders’ equity:
Class A ordinary shares (US$0.0001 par value; 470,000,000 shares authorized, 220,505,115 and 220,770,780 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively)	137		137		21
Class B ordinary shares (US$0.0001 par value; 30,000,000 shares authorized, 13,300,738 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively)	8		8		1
Additional paid-in capital	5,207,631		5,286,693		818,804
Treasury shares	–		(80,268	)	(12,432	)
Retained earnings	952,001		1,033,022		159,996
Accumulated other comprehensive income	(48,756	)	(75,893	)	(11,754	)

Total Baozun Inc. shareholders’ equity	6,111,021		6,163,699		954,636

Non-controlling interests	22,582		144,140		22,324

Total equity	6,133,603		6,307,839		976,960

Total liabilities, redeemable non-controlling interests and equity	10,474,691		10,844,720		1,679,633

Baozun Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands, except for share and per share data and per ADS data)

	For the three months ended June 30,
	2020		2021
	RMB		RMB		US$

Net revenues
Product sales	927,799		972,077		150,556
Services	1,224,267		1,332,040		206,307
Total net revenues	2,152,066		2,304,117		356,863

Operating expenses ⁽¹⁾
Cost of products	(775,783	)	(814,617	)	(126,168	)
Fulfillment ⁽²⁾	(575,323	)	(560,382	)	(86,792	)
Sales and marketing ⁽²⁾	(521,969	)	(648,233	)	(100,399	)
Technology and content	(102,258	)	(115,421	)	(17,876	)
General and administrative ⁽²⁾	(53,892	)	(97,960	)	(15,172	)
Other operating income, net	37,802		39,130		6,060
Total operating expenses	(1,991,423	)	(2,197,483	)	(340,347	)
Income from operations	160,643		106,634		16,516
Other income (expenses)
Interest income	9,090		19,404		3,005
Interest expense	(18,112	)	(13,285	)	(2,058	)
Unrealized investment loss	–		(17,254	)	(2,672	)
Impairment loss of investments	–		(3,541	)	(548	)
Exchange gain	274		24,747		3,833
Income before income tax and share of income in equity method investment	151,895		116,705		18,076
Income tax expense ⁽³⁾	(29,107	)	(35,470	)	(5,494	)
Share of income (loss) in equity method investment, net of tax of nil	(1,719	)	587		91
Net income	121,069		81,822		12,673

Net income attributable to non-controlling interests	(653	)	(2,056	)	(318	)
Net income attributable to redeemable non-controlling interests	(645	)	–		–
Net income attributable to ordinary shareholders of Baozun Inc.	119,771		79,766		12,355

Net income per share attributable to ordinary shareholders of Baozun Inc.:
Basic	0.68		0.36		0.06
Diluted	0.67		0.35		0.05
Net income per ADS attributable to ordinary shareholders of Baozun Inc.:
Basic	2.04		1.08		0.17
Diluted	2.00		1.06		0.16
Weighted average shares used in calculating net income per ordinary share
Basic	176,473,910		221,946,486		221,946,486
Diluted	179,857,079		225,009,009		225,009,009

Net income	121,069		81,822		12,673
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	1,899		(32,971	)	(5,107	)
Comprehensive income	122,968		48,851		7,566

(1) Share-based compensation expenses are allocated in operating expenses items as follows:

	For the three months ended June 30,
	2020	2021
	RMB	RMB	US$

Fulfillment	2,681	4,815	746
Sales and marketing	9,074	25,406	3,935
Technology and content	4,412	11,513	1,783
General and administrative	9,893	9,975	1,545
	26,060	51,709	8,009

(2) Including amortization of intangible assets resulting from business acquisition, which amounted to RMB0.4 million and RMB3.3 million for the three months period ended June 30, 2020 and 2021, respectively.

(3) Including income tax benefits of RMB0.1 million and RMB0.8 million related to the reversal of deferred tax liabilities, which was recognized on business acquisition for the three months period ended June 30, 2020 and 2021, respectively.

Baozun Inc.
Reconciliations of GAAP and Non-GAAP Results
(in thousands, except for share and per ADS data)

	For the three months ended June 30,
	2020		2021
	RMB		RMB		US$


Income from operations	160,643		106,634		16,516
Add: Share-based compensation expenses	26,060		51,709		8,009
Amortization of intangible assets resulting from business acquisition	391		3,304		512
Non-GAAP income from operations	187,094		161,647		25,037

Net Income	121,069		81,822		12,673
Add: Share-based compensation expenses	26,060		51,709		8,009
Amortization of intangible assets resulting from business acquisition	391		3,304		512
Unrealized investment loss	–		17,254		2,672
Less: Tax effect of amortization of intangible assets resulting from business acquisition	(98	)	(826	)	(128	)
Non-GAAP net income	147,422		153,263		23,738

Net income attributable to ordinary shareholders of Baozun Inc.	119,771		79,766		12,355
Add: Share-based compensation expenses	26,060		51,709		8,009
Amortization of intangible assets resulting from business acquisition	199		2,827		438
Unrealized investment loss	–		17,254		2,672
Less: Tax effect of amortization of intangible assets resulting from business acquisition	(50	)	(707	)	(110	)
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc.	145,980		150,849		23,364


Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS:
Basic	2.48		2.04		0.32
Diluted	2.43		2.01		0.31
Weighted average shares used in calculating net income per ordinary share
Basic	176,473,910		221,946,486		221,946,486
Diluted	179,857,079		225,009,009		225,009,009

______________________________________________________

¹ This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
² Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisition.
³ Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. is a non-GAAP financial measure, which is defined as net income attributable to ordinary shareholders of Baozun Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss.
⁴ Each ADS represents three Class A ordinary shares.
⁵ Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial measures, which are defined as non-GAAP net income attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating basic and diluted net income per ordinary share multiplied by three, respectively.
⁶ GMV includes value added tax and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of the goods that are returned and (iv) deposits for purchases that have not been settled.
⁷ Distribution GMV refers to the GMV under the distribution business model.
⁸ Non-distribution GMV refers to the GMV under the service fee business model and the consignment business model.

August 19, 2021 6:03 am

Patria Reports Second Quarter 2021 Earnings Results

GRAND CAYMAN, Cayman Islands, Aug. 19, 2021 (GLOBE NEWSWIRE) — Patria (Nasdaq:PAX) reported today its unaudited results for the second quarter ended June 30, 2021. The full detailed presentation of Patria’s second quarter 2021 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.

Alex Saigh, Patria’s CEO, said: “We’re very excited with our progress since the IPO, with nearly all of our key metrics running ahead of our expectations from the beginning of this year. We are deploying capital faster, which is accelerating earnings growth, as well as our fundraising timelines. Our Q2 results continue to demonstrate impressive rates of revenue and FRE growth, and we are delivering an attractive yield to shareholders with the realization of performance fees.”

Financial Highlights (reported in $ USD)

Patria IFRS results for Q2 2021 included net income of $73.4 million. Patria generated Fee Related Earnings of $17.6 million in Q2 2021, up 19% from $14.9 million in Q2 2020, with an FRE margin of 55%. Distributable Earnings were $74.2 million for Q2 2021, or $0.545 per share, which includes $56.4 million of Performance Related Earnings (“PRE”).

Dividends

Patria has declared a quarterly dividend of $0.463 per share to record holders of common stock at the close of business on September 2, 2021. This dividend will be paid on September 16, 2021.

Conference Call

Patria will host its second quarter 2021 earnings conference call via public webcast on August 19, 2021 at 9:00 a.m. ET. To register and join, please use the following link:

https://edge.media-server.com/mmc/p/66bsf8ek

For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.

About Patria

Patria is a leading investment firm in Latin America’s growing private markets, with over 30 years of history, combined assets under management of US$15.8 billion, and a global presence with 10 offices across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities that allow for portfolio diversification through its flagship Private Equity and Infrastructure products, as well as its Country-specific products including Real Estate, Credit and Listed Equities. Through its investments Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for the society. Further information is available at https://www.patria.com/.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our 424(b) prospectus, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contact

Josh Wood
t +1 917 769 1611
[email protected]

Andre Medina
t +1 345 640 4904
[email protected]

August 19, 2021 6:03 am

Black Construction-Tutor Perini JV Awarded $98.3 Million Bachelor Officer Quarters Project in Guam

Black Construction-Tutor Perini JV Awarded $98.3 Million Bachelor Officer Quarters Project in Guam

LOS ANGELES–(BUSINESS WIRE)–
Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that the Black Construction-Tutor Perini joint venture has been awarded a fixed-price contract valued at approximately $98.3 million by the Naval Facilities Engineering Systems Command, Pacific Division, for the construction of a bachelor officer quarters at Marine Corps Base Camp Blaz on Guam. Black Construction is a subsidiary of the Company, and is one of Guam’s largest employers and a major general contractor working in Guam and throughout the Western Pacific. The contract is funded by the government of Japan as part of the international agreement between the United States and Japan. The project scope of work includes construction of a multi-story housing tower with an attached one-story common area wing and a detached utility building. The structure will house single-occupancy housing units with living, bedroom, closet, private bath, kitchen and laundry.

Engineering work has already commenced, with field work expected to begin in November 2021 and substantial completion anticipated in May 2024. The contract value will be included in the Company’s third-quarter 2021 backlog.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget while adhering to strict quality control measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005265/en/

Tutor Perini Corporation

Jorge Casado, 818-362-8391

Vice President, Investor Relations and Corporate Communications

www.tutorperini.com

KEYWORDS: Australia/Oceania Guam United States Japan North America Asia Pacific California

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Contracts Public Policy/Government Architecture White House/Federal Government Other Construction & Property Defense Residential Building & Real Estate

MEDIA:

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August 19, 2021 6:03 am

Largo Resources Releases its 2020 Sustainability Report

Largo Resources Releases its 2020 Sustainability Report

TORONTO–(BUSINESS WIRE)–
Largo Resources Ltd. (“Largo” or the “Company“) (TSX: LGO) (NASDAQ: LGO) is pleased to announce the release of its 2020 sustainability report, highlighting significant progress made by the Company with its environmental, social and governance priorities in furthering vanadium’s role in the global green economy.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210819005102/en/

Largo Resources Releases its 2020 Sustainability Report (Graphic: Business Wire)

Paulo Misk, President and Chief Executive Officer stated: “In 2020, we made significant progress with a broad range of initiatives, including GHG emission reporting and growing our sustainability-focused product line to include vanadium redox flow batteries which are essential in the integration of renewable energy generation. We committed to the first Global Industry Standard on Tailings Management and aligned our community programs with the Sustainable Development Goals of the United Nations.” He continued: “The accomplishments highlighted throughout our report are a direct result of our employees’ commitment to sustainability at Largo and we look forward to continuing the improvement of our sustainability performance in the years to come.”

The report is available for download within the Sustainability section of our website at www.largoresources.com.

About Largo Resources

Largo is a Canadian domiciled company that has historically been solely committed to the production and supply of high-quality vanadium products. The Company recently announced its belief that the development and sale of vanadium based electrical energy storage systems to support the planet’s on-going transition to renewable energy presents both an attractive economic opportunity for the use of the Company’s vanadium products and an opportunity to enhance the Company’s sustainability. Consequently, the Company is in the process of vertically integrating its highly efficient vanadium production operations with its vanadium-based energy storage technology to create a unique competitive advantage in the rapidly growing long duration energy storage market. The Company is confident that using its VPURE^TM and VPURE+^TM products, which are sourced from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine in Brazil, in its VCHARGE± vanadium redox flow battery technology results in a competitive and practical long duration energy storage product.

For more information on Largo and VPURE™, please visit www.largoresources.com and www.largoVPURE.com.

For additional information on Largo Clean Energy, please visit www.largocleanenergy.com.

Forward-looking Information:

This press release contains forward-looking information under Canadian securities legislation, some of which may be considered “financial outlook” for the purposes of applicable Canadian securities legislation (“forward-looking statements”). Forward-looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; costs of future activities and operations; the extent of capital and operating expenditures; the iron ore price environment; the timing and cost related to the build out of the ilmenite plant; eventual production from the ilmenite plant; the ability to sell ilmenite on a profitable basis and the extent and overall impact of the COVID-19 pandemic in Brazil and globally. Forward-looking information in this press release also includes, but is not limited to, statements with respect to our ability to build, finance and operate a VRFB business, our ability to protect and develop our technology, our ability to maintain our IP, our ability to market and sell our VCHARGE± battery system on specification and at a competitive price, our ability to secure the required production resources to build our VCHARGE± battery system, and the adoption of VFRB technology generally in the market. Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedar.com and www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As which also apply.

Trademarks are owned by Largo Resources Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005102/en/

Investor Relations:

Alex Guthrie

Senior Manager, External Relations

[email protected]

Tel: +1 416-861-9797

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Natural Resources Alternative Energy Energy Environment Mining/Minerals

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Largo Resources Releases its 2020 Sustainability Report (Graphic: Business Wire)

August 19, 2021 6:03 am

HyreCar President Brian Allan to Present at NIADA 2021 Expo & Convention

HyreCar President Brian Allan to Present at NIADA 2021 Expo & Convention

LOS ANGELES–(BUSINESS WIRE)–HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing, food, and package delivery services, today announced its participation and presentation in the upcoming NIADA Convention and Expo being held August 23-26, 2021 in San Antonio, TX.

The National Independent Automobile Dealers Association (NIADA) is among the nation’s largest trade associations, representing the used motor vehicle industry comprised of some 40,000 licensed used car dealers. Auto dealers from across America come to learn, connect and grow their network.

HyreCar President Brian Allan will present at 2:45 p.m. CT on Thursday, August 26, 2021 on the benefits on HyreCar’s platform for independent and franchised dealers as part of the show’s revenue generation educational sessions.

“At the NIADA Convention and Expo we build educational sessions for our dealer attendees to show them different ways they can profit from changes in the industry. Specifically, this year we wanted to focus on new profit centers within dealerships and Brian Allan’s topic checks that box, as he has both automotive retail and mobility experience,” said Lou Tedeschi, NIADA Board President and a past president of the Massachusetts/New England Independent Auto Dealer Association.

“Over 50,000 drivers a month apply for on-demand transportation opportunities and up to 40% of those applicants do not have a qualifying vehicle or wish to rent a different vehicle,” said Allan. “Today’s smartphone capabilities, vehicle connectivity and new insurance solutions enable exciting opportunities for dealers to participate in the on-demand TAAS industry by renting, selling, and servicing vehicles. This session is meant to educate automotive dealers that they are in the best position to profit from this and future mobility opportunities. I look forward to sharing our vision at the upcoming NIADA Expo.”

HyreCar will be present at the NIADA Convention and Expo at Booth #641.

For more information on carsharing news or to keep up to date with everything Uber, Lyft, rideshare, food, and package delivery, please visit HyreCar’s blog at https://www.hyrecar.com/blog/.

About HyreCar

HyreCar Inc. (NASDAQ: HYRE) is a nationwide leader operating a carsharing marketplace for ridesharing and delivery services through our proprietary platform. The Company has established a leading presence in Transportation-as-a-Service (“TaaS”) through vehicle owners and institutions, such as franchise car dealerships, independent car dealerships and rental car companies, who have been disrupted by automotive asset sharing. By providing a unique opportunity through our safe, secure, and reliable marketplace, HyreCar is transforming the industry by empowering all to profit from TaaS. For more information please visit hyrecar.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005156/en/

Allie Potter

Skyya PR for HyreCar

218-766-8856

[email protected]

John Evans

Investor Relations

415-309-0230

[email protected]

KEYWORDS: United States North America California Texas

INDUSTRY KEYWORDS: Other Transport Mobile/Wireless Technology Aftermarket Automotive General Automotive Transport Software Logistics/Supply Chain Management Fleet Management

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